By
Chimamanda U. Martha
April 25th, 2024
Coinbase Pro has announced support for ERC-20 based, stable coin Tether (USDT). The exchange confirmed trading will commence on Monday, April 26, if liquidity conditions are met.
Coinbase continues to grow its list of coins on offer in its trading platforms. The most robust of them all, Coinbase Pro has in recent weeks accelerated its efforts with the market anticipating an altseason. On Thursday, April 22, the exchange announced their support of Tether (USDT). Tether is an Ethereum-based stablecoin. In fact, it is the most popular stable coin with a market cap of nearly $50 billion which places it in the top 4 ranked coins in the market. It further celebrates the highest daily volume of any cryptocurrency. Its value is pegged to the US dollar.
Starting today, inbound transfers for USDT are now available in the regions where trading is supported. Traders cannot place orders and no orders will be filled. Trading will begin on or after 6PM PT on Monday April 26 , if liquidity conditions are met. https://t.co/F5o73g8o4v
— Coinbase Exchange (@CoinbaseExch) April 22, 2021
Coinbase Pro and Its Plans for Tether Support
Coinbase confirmed that the token will be offered on all Coinbase supported jurisdictions except New York. Clients can deposit their Tether in their Coinbase Pro accounts but on or after 6 PM Pacific Time (PT) Monday, April 26, if liquidity conditions are met stated can they start trading.
The exchange stated that order books will come in three phases after sufficient supply was met.
“If at any point one of the new order books does not meet our assessment for a healthy and orderly market, we may keep the book in one state for a longer period of time or suspend trading as per our Trading Rules,” the announcement reads.
It is further clear that USDT is not on either on Coinbase.com or via our consumer mobile apps, but if and when this is available another announcement will be made.
Tether’s Stained Image
With nearly $50 billion in circulation, roughly 24.4 billion is based on Ethereum while a majority of the rest is on the Tron network. Coinbase is clear that it only supports ERC-20 USDT running on the Ethereum blockchain.
The listing is set to bring some controversy with Tether not particularly open about their financials. Every stable coin protocol should hold reserves that fully back each token. For years, there were claims that USDT was not fully backed. A case with New York’s Attorney General that began in 2019 ended with the project settling and paying $18.5 million.
In addition, the project has been accused of manipulating Bitcoin prices in 2017, which it categorically denies. Despite these issues, it has continued to be the most popular stable coin. Its addition by Coinbase is a vote of confidence further bolstering its image.
Coinbase has only recently listed new tokens including 1INCH, ENJ, NKN and OGN as we reported. Most exchanges are gearing up for what could be another altseason. A few hours ago, Bitcoin’s market dominance slipped below 50%, a dangerous level that could mark a market transition. The heightened activity comes days after Coinbase listing on the Nasdaq Stock Market.